A few months ago we examined the concept of traps occurring in the price action just before, or immediately after, the RTH Open (RTH = Regular Trading Hours).
I'll place links to the prior articles at the bottom of this one, if you want to review them.
Today, let's look at another example of a breakout very late in the pre-session market, just before the RTH Open.
This is something which I absolutely LOVE to see. Because if that breakout fails, then it often sets up quite favourable conditions from the open. And so I'm keen to get a trade on as soon as I can.
No patience. No delays. It's game on!
Here's the general concept:
This concept can be applied in any market which offers pre-session trading leading into a clearly defined "regular" day session. Spot forex traders might apply it at the UK open, or the US open.
Today's example set up a break of the overnight high. That is, the same concept as the second image above.
Let's start by looking at a higher timeframe chart, to get some wider context.
And the breakout on the Trading Timeframe chart:
I've written a lot about displaying patience at the open. About waiting till the bias is clear and trading conditions are favourable.
But there are some situations where I don't display patience.
Where I'm keen to get a trade on as soon as I can.
No patience. No delays. It's game on!
One of these situations is when the market sets up a trap just before or just after the RTH Open.
Keep an eye out for similar opportunity in your own trading.
Happy trading,
Lance Beggs
Prior Articles:
Traps Just Before RTH Open – https://yourtradingcoach.com/trading-process-and-strategy/traps-just-before-rth-open/
Traps At The Open – https://yourtradingcoach.com/trading-process-and-strategy/traps-at-the-open/
Traps At The Open 2 – https://yourtradingcoach.com/trading-process-and-strategy/traps-at-the-open-2/